Irish recaps could wait for stress test

City A.M. Reporter
A NEW Irish government is likely to wait until a fresh round of stress tests are completed before recapitalising the country’s top lenders, giving the only bank left trading on the main index more time to avoid state control.

The main opposition party, expected to lead the next government after a 25 February election, said a new administration should wait until after the central bank completes its sector review, at the end of March, before putting more capital into lenders.

“If there is no government until 9 March or beyond that, I think it is prudent for (an) incoming government to wait until stress testing before putting capital in,” Fine Gael’s finance spokesman Michael Noonan said yesterday.